US Stock Futures Climb as Global Volatility Eases: Markets Wrap

Claudia Sahm, New Century Advisors Chief Economist & Former Fed Economist joined Bloomberg Open Interest to talk about the fallout if President Trump were to fire Fed Chair Jerome Powell. Bloomberg

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(Bloomberg) — An anxious calm was restored on Wall Street following Monday’s jarring losses, with stocks, bonds and the dollar steadying even as haven-seeking traders sent gold to a record high amid concern over White House hostility toward Jerome Powell.

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S&P 500 contracts climbed 0.7% as traders looked forward to earnings from Tesla Inc. later in the day. Lockheed Martin Corp. shares climbed 4.1% in the premarket after its sales beat estimates. 

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Treasures and the dollar posted small moves, showing greater stability after tumbling Monday as investors fretted over the implications of any effort to replace the Federal Reserve Chair by President Donald Trump, who has berated Powell for being slow to cut interest rates. 

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Demand for havens beyond US assets persisted, with bullion topping $3,500 for the first time. The yen strengthened beyond 140 per dollar for the first time since September. Bitcoin advanced 1.4%

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“We expect markets to continue to fluctuate in the short term,” said Vincent Juvyns, chief investment strategist at ING. “We remain neutral on equities. When you don’t know what’s ahead, you just need to know that you don’t know.”

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In Europe, the Stoxx 600 index dropped as traders returned from the Easter break. Novo Nordisk A/S slumped almost 10% on concern it faces tougher competition from Eli Lilly & Co.’s experimental weight loss pill.

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US stocks looked poised to rebound after the S&P 500 and the Nasdaq 100 slid more than 2% in Monday’s session. Concerns that Trump may be preparing to fire Powell have added to unease for traders already grappling with the turmoil unleashed by the president’s tariff onslaught. 

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Trump’s policies and his broadsides against the Fed have forced a reappraisal of the dollar and Treasuries as havens in times of stress. 

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“With increasing rhetoric from the administration admonishing the Fed to cut rates and the markets entertaining intensifying discussions about the possibility of replacing the Fed chair, we don’t expect a rush back into the market from abroad,” John Velis, a strategist at Bank of New York Mellon, said of US bonds. “The haven status of such assets is increasingly in question.” 

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Attention later Tuesday will shift to Tesla, which reports first-quarter earnings after market close. The stock has dropped about 44% this year as controversy over Chief Executive Officer Elon Musk’s role in the federal government has contributed to a global sales slump.

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Meanwhile, the US said it’s made “significant progress” toward a bilateral trade deal following talks between Vice President JD Vance and Indian Prime Minister Narendra Modi on Monday. Vance on Tuesday called on India to buy more American goods, particularly energy and military equipment. Trump has repeatedly criticized the country for high tariffs.